Independent Asian Credit Research, Bondcritic

Warut Promboon

Independent Asian Credit Research

Asian Fixed Income/Frontier Market Research

Bondcritic

Bondcritic, established in 2009, is designed to be an independent credit research voice that helps investors gain insights and unbiased analyses on Asian fixed income market. Our mission is to discover deep-value Asian high-yield and distressed bonds with a bottom-up approach, together with the help of our proprietary ESG (Environmental, Social Development, and Governance) model. At the same time, we focus on bringing investment cases of unrated and unloved issuers to the general public.

Credit

<ul>
<li>
<a href="https://www.smartkarma.com/entities/stark-corporation-public-company-limited" target="_blank" data-smartkarma-citation="entities:6337:1" rel="noopener">STARK Corporation (STARK TB) </a>(Stark) defaulted on its interest payments on 2-June, leading to a default event.</li>
<li>Stark’s default has exposed the structural weakness in the Thai bond market which is worth discussion.</li>
<li>We do not believe there is a reasonable basis for calculating the bond recovery value at this juncture.</li>
</ul>



STARK Corporation (STARK TB) (Stark) defaulted on its interest payments on 2-June, leading to a default event.
Stark’s default has exposed the structural weakness in the Thai bond market which is worth discussion.
We do not believe there is a reasonable basis for calculating the bond recovery value at this juncture.


Stark Corporation: Not the Guy from the Movie

Equity Analyst, LightStream Research

Aqila Ali

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

Samvardhana Motherson International Ltd / Event-Driven

<p>On Friday, following news about entering merger/acquisition talks with <a href="https://www.smartkarma.com/entities/21666" target="_blank" data-smartkarma-citation="entities:21666:1">Leoni AG (LEO GR)</a>, shares of <a href="https://www.smartkarma.com/entities/10662" target="_blank" data-smartkarma-citation="entities:10662:1">Motherson Sumi Systems (MSS IN)</a> closed up 3.1% up to INR166. Leoni’s stock, on the other hand, increased by 2.7% at Friday’s close, although the stock has been experiencing a declining trend over the past year. We mentioned in <a href="https://www.smartkarma.com/insights/two-more-acquisitions-on-the-way-for-motherson-sumi" target="_blank" data-smartkarma-citation="insights:18031">Two More Acquisitions on the Way for Motherson Sumi</a>, that Leoni could be a potential acquisition target for Motherson in its wire harnessing segment, although on the higher end of the size spectrum. The company representatives have not commented on this acquisition news and the deal is not finalised yet. Thus, this could simply remain at the discussion stage with no real transaction taking place.</p>
<p> Leoni has been experiencing a decline in its earnings during the recent quarters of FY2018, expecting negative free cashflows for FY2018E. However, recent news is that Leoni has recently been undertaking a comprehensive restructuring programme after cutting its earnings target for FY2018E and has appointed a new chief executive in September to lead these efforts. Further, it should be noted that Leoni is a well-established company in the auto components business and thus, could overcome its current struggles and be in a good position to exploit the long-term growth prospects of this market. Thus, acquiring Leoni is likely to strengthen Motherson’s position globally by providing the latter with increased coverage geographically and product wise. </p>

On Friday, following news about entering merger/acquisition talks with Leoni AG (LEO GR), shares of Motherson Sumi Systems (MSS IN) closed up 3.1% up to INR166. Leoni’s stock, on the other hand, increased by 2.7% at Friday’s close, although the stock has been experiencing a declining trend over the past year. We mentioned in Two More Acquisitions on the Way for Motherson Sumi, that Leoni could be a potential acquisition target for Motherson in its wire harnessing segment, although on the higher end of the size spectrum. The company representatives have not commented on this acquisition news and the deal is not finalised yet. Thus, this could simply remain at the discussion stage with no real transaction taking place.
 Leoni has been experiencing a decline in its earnings during the recent quarters of FY2018, expecting negative free cashflows for FY2018E. However, recent news is that Leoni has recently been undertaking a comprehensive restructuring programme after cutting its earnings target for FY2018E and has appointed a new chief executive in September to lead these efforts. Further, it should be noted that Leoni is a well-established company in the auto components business and thus, could overcome its current struggles and be in a good position to exploit the long-term growth prospects of this market. Thus, acquiring Leoni is likely to strengthen Motherson’s position globally by providing the latter with increased coverage geographically and product wise. 

Motherson In Merger Talks with One of Our Previously Short-Listed Candidates - Leoni

Germany

Leoni AG manufactures and sells electric cables, wires, flexible cords, light wave conductors, co-axial cables, high-tension wires and customized cable wiring systems. The Company markets its products to the tool-machinery, telecommunication, computer, automotive, electronic and appliance manufacturing industries.  Leoni operates in Europe, Asia and the United States.

Leoni AG (LEO GR)

Stark Corporation: Not the Guy from the Movie

Stark already defaulted on its interest payments on STARK239A and STARK249A . This is a classic fraud case where management could have siphoned...

Bondcritic

Motherson In Merger Talks with One of Our Previously Short-Listed Candidates - Leoni

On Friday, following news about entering merger/acquisition talks with Leoni AG (LEO GR), shares of Motherson Sumi Systems (MSS IN) closed up 3.1%...

Aqila Ali